Cyprus bailout causes run on banks

http://www.aljazeera.com/news/europe...138495325.html

From my favorite news source....Aljazeera...more at link...the bailout is about 1/2 of their annual GDP

Cyprus has received a $13bn bailout after lengthy talks in Brussels with eurozone leaders and the International Monetary Fund. But the conditions attached to the deal have led to a run on the country's banks.

Savers reacted with shock on Saturday after the government agreed to an unprecedented levy on all deposits in return for the EU bailout.

The debt rescue package, agreed with the eurozone and the IMF early in the morning after around 10 hours of talks in the Belgian capital, is significantly less than the 17bn euros Cyprus had initially sought.

Most of the balance is to be made up through the bank deposit levy of up to 9.9 percent, which will apply to everyone from pensioners to Russian oligarchs and tens of thousands of British expatriates, and is hoped to raise 5.8bn euros.

Cyprus - which accounts for just 0.2 percent of the combined eurozone economy - is the fifth country to secure a debt rescue package from its eurozone partners in the three-year debt crisis.

 

9.9% if you have over 100K Euros in the bank and 6.7% for everyone else...

 

IIRC, Cyprus has been a tax haven for the wealthy and for multinational corporations for some time.

I feel sorry for the people of Cyprus, but to the tax cheats and drug cartels, this couldn't have happened to a nicer group of folks.

 

This just sends a signal to the people of Italy, Spain and Portugal and other struggling countries in the EU; Your money is not safe.

 

Its straight up robbery. Leave it to you to find some way to defend it.

Do you get off on having a differing opinion than everyone else?

 

You should rename thread title "EU and IMF Rob peasants blind."

 

Italy, step on up....!

15% being proposed. ****in bloodsucking theives!

Europes new deal. I'd be gettin my money out.

http://www.zerohedge.com/news/2013-03-17/german-commerzbank-suggests-wealth-tax-italy-next

 

Robbery would be criminal. This isn't criminal. Property rights only exist when you have a governing set of rules which put them in place, and the extent to which folks have those property rights varies.

The fact is that your average cypriot probably doesn't have $100K in the bank, so it's a 6.7% one time tax of what they have in the bank on any given day, which probably isn't enough to break anyone's bank.

For the criminal organizations and tax cheats out there, I would agree, this is a huge deal for them. Do I feel sorry for them? Not at all. You lay down with dogs, you wake up with fleas.

 

A 7% "tax". Yeah right. If you had 90 K, you just got taxed 6k for the good of the country.

Nobody will trust the banks now in Europe. This will end badly. And it is theft. You can try and justify all you want, but God help us if thats the new way countries handle finances.

 

what was going to happen if they didn't get the bailout?

 

A couple of major banks would collapse and the government would default by Wed....I think that is what I read...

They have delayed the vote...the prez is addressing the country sometime today....

 

but how much money would said depositors lose?

 

5.8 billion Euros from depositors...a little over half the total bailout...corp taxes must also go up a couple of percent...feds must sell off some of their assets....that is if the plan go through...talk that the lower income tax on deposits will be lower than the initial reported number...still conjecture since the vote has been delayed...

 

Population of only a million or so...even non citizens get hammered...Great Britain has vowed to make its service members that are stationed there whole...

 

So when it comes to the local citizenry, those that have saved their money will be impacted. Another case of those who live responsibly being stuck with the bill for those that don't.

Fits right in with what I've been working on today: my taxes.

 

Cyprus wanted 22 billion Euro and got significantly less...

The banking tax will get about 6,000 (7,000 US)euro per citizen...

If this were to take place in the US it would amount to 7 grand on 300 million citizens....2.1 trillion US dollars

 

I've said it since 1996, and I'll say it again: Mason jars. Stuffed to the rim with Benjamins. Buried in the pasture. You're welcome.

PS: What kind of ****ing idiot invests in anything that is "Europe?" Sheez. Reap what ye sow.

 

Dean,

They recall currency all the time in Europe. If you do not make the exchange you are SOL.

 

But Dean aint buryin his Benjamins in Europe He buryin em in his Pasture over by Lexington
Pay tention

 

Recall currency?! They took a percentage out of everyones bank account. On what planet is this ok?